Design and Optimization of a Renewable Energy Based Microgrid System on Reni Island

Abstract

Remote island communities in Indonesia often face limited access to reliable and affordable electricity due to geographic isolation and dependence on expensive, carbon-intensive diesel generators. This study investigates a hybrid renewable energy-based microgrid system tailored for Reni Island that uses photovoltaic modules, a diesel generator, and a battery energy storage system. Using HOMER Pro software, the system was modeled and optimized using local meteorological data and load profiles to assess its techno-economic feasibility. The optimal configuration—a PV–BESS–Inverter system (5 kWp PV and BESS)—was selected after simulating multiple architectures. Technically, the system is highly feasible, supplying an annual electricity demand of 4,315 kWh with a total generation of 4,816 kWh. The system achieved a 100% renewable energy fraction. Economically, it is viable, with a Net Present Cost (NPC) of IDR 204.14 million, a Cost of Energy of IDR 3,008/kWh, and a payback period of 12 years and 6 months. Environmentally, it is sustainable, eliminating diesel fuel consumption and reducing CO₂ emissions by approximately 11,330 kg annually compared to a generator-only system. These findings demonstrate that the chosen hybrid microgrid is a technically feasible, economically viable, and environmentally sustainable solution for remote electrification. The novelty of this work lies in its context-specific system design using real-world constraints and the absence of historical demand data, offering a scalable model for electrifying underserved archipelagic regions.